Letter: Corporate tax hikes will hurt economy

With policymakers in Washington looking to find additional revenue sources to fund government spending, the business community is once again being unfairly targeted to fund these programs in the form of additional taxes.

As gas prices skyrocket and the cost of food at our grocery stores continue to rise, it's concerning to see "that everything is still on the table" when it comes to taxing manufacturers, kicking around ideas like raising the Global Intangible Low Tax Income (GILTI) and corporate tax rates.

Should Congress move forward with raising the GILTI rate, it could place manufacturers at a competitive disadvantage to their international competitors in global markets due to increased costs of operations. A mere increase from 10.5 to 15% could cost our nation over $10 billion in lost economic activity.

Manufacturers in Illinois generate more than $304 billion in economic output, contributing 12 percent to the state's Gross Domestic Product - the largest share of any industry in Illinois. Manufacturers employ 555,300 women and men in Illinois at an average salary of $88,691, providing $52 billion in wages and benefits.

At a time when we can't afford to put our business community at a competitive disadvantage on the global stage, it's concerning to see these international tax hikes considered in both Springfield and Washington. The impact of a corporate tax hike would impact business owners of all sizes. Make no mistake about the damage this could deal to our economy as we're all working to recover.

Here at home in Illinois, we won't be immune to the impacts that decisions like these in Washington will have. Now more than ever do we need our community to stand together and protect our Illinois businesses and those that they employ.

Mark Denzler, President and CEO

Illinois Manufacturers' Association